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For evidence of how supply chain straegies can balance financial and competitive goals with environmental and social responsiblity look no further than these examples from Hewlett-Packard’s presentation at the AMR Supply Chain Executive Conference:
- By the end of next year, Hewlett-Packard will have recycled 1 billion pounds of electronic waste. The company now gets 60% more of the precious metals it uses in its products from its recycling program than from mining. Considering the price increases and supply shortages in the metals industry recently, this strategy pays off both in reduced costs and reduced risks.
- HP has also cut the amount of packaging used for its printers. The effort has not only reduced reliance on new paperboard but has also reduced HP’s shipping costs for the products by 70% since 2003.
- In 2002, HP has also released a Supply Chain Social and Environmental Responsibility (SER) Policy and the Supplier Code of Conduct, which commits the company to “working with suppliers to ensure they operate in a socially and environmentally resonsible mannner.” HP used these company policies as the foundation for the Electronic Industry Code of Conduct (EICC), an initiative to “foster responsible labor, human rights, environmental, health and safety, and ethics practices across the electronics industry’s global supply chain.”
I highly encourage supply management executives to take HP’s lead and use the company’s own (and publicly accessible) codes of conduct as a guide for developing environmentally and socially sustainable supply strategies and practices at your own firm.
11 responses so far ↓
1 Supply Excellence » PC Makers Ramp up Recycling. What’s Their Real Motivation? // Jul 6, 2006 at 7:46 am
[...] Last month, I shared insights into Hewlett-Packard’s environmentally and socially responsible supply management strategies. A cornerstone of this initiative is HP’s recycling program. By the end of next year, HP will have recycled 1 billion pounds of electronic waste. [...]
2 Supply Excellence » Do Recent Price Increases Portend the End of the World As We Know It?javascript:tinyMCE.execInstanceCommand(’mce_editor_0′,’mceWordPressHelp’) // Aug 1, 2006 at 3:08 pm
[...] You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your ownsite. [...]
3 Supply Excellence » Pump Up Green Supply — Or Else // Oct 2, 2006 at 11:21 am
[...] Examples of how sustainable supply strateiges can provide a competitive edge are plentiful. An earlier post here showed how an aggressive PC and monitor recycling has helped Hewlett-Packard gain supply cost, assurance, and performance advantages over competitors who are now scrambling to offset higher gold and copper prices. Likewise, Starbucks and WalMart are using environmentally and socially responsible supply approaches to gain cost and marketing advantages. [...]
4 Supply Excellence » 2007: The Year of Sustainable Supply Strategies // Jan 3, 2007 at 1:38 pm
[...] Hewlett-Packard has recycled more than 1 billion pounds of used PCs, monitors, and other electronic waste. The company now gets 60% more of the precious metals — like copper and gold — it uses in its products from its recycling program than from mining. Considering the all-time high prices and supply shortages for these metals recently, this strategy has paid off both in reduced costs and risks. Competitors Apple and Dell have been scrambling recently to step up their own recycling efforts. [...]
5 Supply Excellence » Sustainable Supply: There’s No Denying It // Jan 24, 2007 at 2:10 pm
[...] I have chronicled on Supply Excellecne how companies like Hewlett-Packard, Toyota, Adobe Software, Microsoft, Google, Wal-Mart, and others have used sustainable supply strategies for a competitive advantage. I have even shown how supply management organizations, like HP and Airbus, are beginning to use environmental and social responsibility as part of their supplier selection and performance measures. [...]
6 Supply Excellence » Killing the Messenger: Sparking the Great KPI Debate // May 29, 2007 at 2:50 pm
[...] I’m happy to say that companies like Sun Microsystems, Qualcomm, Starbucks, Hewlett-Packard, and others have made this shift. I’m even happier to report that Supply Excellence readers also recognize the importance of changing the metrics for supply management success. [...]
7 Supply Excellence » Bull Scrap // Jul 10, 2007 at 8:59 am
[...] You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your ownsite. [...]
8 Supply Excellence » Supply Management Success Strategies for 2008 // Jan 3, 2008 at 12:18 pm
[...] Embrace sustainable supply strategies: Last year I predicted that 2007 would be the year that environmentally and socially responsible supply strategies go mainstream. And many of you didn’t believe me. Well, moves by Hewlett-Packard, Wal-Mart, Sun Microsystems, and others clearly indicates that the sustainability movement has already begun. This year, tighter environmental regulations from China and the U.S. (coupled with the need to offset supply price increases and risks) will drive most of you to employ sustainable supply strategies. The smarter in the bunch will find ways to leverage these approaches to lower supply costs, secure supply, and drive greater sales and profits. [...]
9 Supply Excellence — Welcome Aboard the Sustainability Bandwagon // Apr 23, 2009 at 2:49 pm
[...] and pallets. This not only reduces waste but it also cuts shipping bills dramatically. Others like, Hewlett-Packard have used recycling programs to successfully offset rising material costs. And Kellogg’s [...]
10 Supply Excellence — Attention Wal-Mart Suppliers: Get Green // Apr 23, 2009 at 2:49 pm
[...] plans to green its supply chain. Following in the footsteps of other multinationals — such as Hewlett-Packard and Airbus – that are using environmental and social responsibility as part of their supplier [...]
11 Issac Maez // Dec 3, 2009 at 4:31 am
PS I also added your RSS feed.
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